The Stage Is Set For Bitcoin To Soar

Recording in March 2020, we breakdown the fall of the stock market, the printing of lots of fed money, interest rates hovering at zero, and what this actually means for Bitcoin. Even though Bitcoin fell with the stocks, what will the rise of this cryptocurrency be? 

Gary and I break all this down because this, exactly, is why Bitcoin was developed. It's as if the stage was specifically designed for this type of currency. 

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Here's the official Episode Breakdown:

Erin Gregor: All right welcome to another episode of clarifying crypto. I'm Erin Gregor here with my co-host, Gary Leland, Gary. Welcome.

Gary Leland: All right. Howdy. Howdy. Glad to be back. Glad to be here, talking more, lots of stuff happening.

Erin Gregor: We're recording this March, I guess 26 is what it is. We are in the middle of quarantine still.

The stimulus package has just been announced and approved.  Things went up a bit today, but I still don't trust anything. Bitcoin is up. We just hit 6,700 as we're recording this. So that's good to see. but Gary, tell me, tell me your thoughts through all this. Cause I know a lot of people are really excited to get their checks.

From pretend money,

Gary Leland: I'll take a check. I mean, you know, you could always my Bitcoin, you could always buy Bitcoin with it. I don't know if I'm going to get a check though, because you have to make  $150K. I don't think I'm ready to get a check up.

Erin Gregor: You could get a check. It just may not be as much. Okay.

Gary Leland: And I don't have any kids. My kids are gone. So I kind of weird on the, like for instance, I'm just going to go through some examples here.  My daughter's a nurse she's getting overtime right now. Is she going to get a check? I don't mind if she gets a check, but will she get a check? She's not losing any money.

Erin Gregor: She will get a check. Cause it's based on last year's earnings, as far as I'm concerned.

Gary Leland: And then my son in law. And daughter are in the he's in the Air Force and she's staying home. His pay hasn't been cut at all. So is he getting a check and is she getting a check? I mean, their pay hadn't been cut one bit.

Erin Gregor: I don't think this is about pay cut. I think this is about giving people cash to stimulate the economy. So it doesn't matter if you got a pay cut.

Gary Leland: I think it's about giving people cash to keep them happy. So they aren't bitching and going crazy when they see how much money that they are told out there everything helps. If they really wanted to keep everybody happy. I think when this ends up being like $6 trillion, I think I saw the math the other day, you can give every citizen a million dollars, for that kind of money. People don't realize, a trillion is like a hundred, 999,000 billion. I mean, it's not a little bit of money, right?

It's like a thousand billion or something. I mean, you know, it's not a little bit of money. So for $6 million, you could give everybody a million dollars. Just say you gave everybody a hundred thousand. You think that was stimulate the economy. If that's what we're going for. Oh my gosh. The economy would be on overdrive.

So I don't know. I don't know, understand the, just given people, small mass... that some people, you know, if you got two people in your household that work, minimal menial jobs, you know, if you're not educated, I'm not giving anyone a hard time. I'm just staying facts, you're not educated person. And you're working full time.

Maybe McDonald's, you know, as a cook, I don't know what the cooks make. That could be the wrong example. And you've got four kids. You actually could be bringing home more money than you make when you work. Cause you're making like $4,000 a month era case, but then someone else, you know, like we, my businesses are all shut down.

I'm not making any money. I'm not sure I'm going to get anything, you know, so, and then my son, he's not taking any cuts, so it's kind of a weird deal to me.

Erin Gregor: Well, what freaks me out about it is where the money's coming from. I mean, it's just pretend at this point. I know we talked a little bit about this last week.

This is the whole validation of Bitcoin, they're printing money. It's going to drive down the value of the U S dollar. As excited as people get about this. It's like, okay, where we're already in so much debt, where did we suddenly get $3 trillion from? Because..

Gary Leland: And then you have to ask this question. If you could just print money, anytime you want. And this is, there's like the extreme case we're talking about putting now, why are they even collect taxes? Why don't they just print money? Why are they even collect taxes at all? They just print the money when they need, they don't have to take it from the people.

Erin Gregor: Exactly. So I hate to be a sky is falling person.

it's a little bit. Yeah, it's frightening a bit. So it's going to be interesting to see how this all pans out, but for me, I know we talked about this last week. It just means. More money for me into Bitcoin, because it's the exact reason why it was created because the dollar..

Gary Leland: This is

exactly why

it was created was for this the last time it happened, when George Bush and Obama was saying, when it was created, it was created.

And it says if that situation on overdrive, They're going to print like I used, cause they're really not printing it. maybe just doing it in a computer, but they're going to create more wealth or more money or take away more wealth, I guess, with the relation, they're going to create more money right now, than they did on all the Obama stuff.

For sure. Probably half of our debt. So if we're $20 trillion in debt, it's going to go up. Our debt's going to go up 30% in a matter of months, not years.

It's frightening.

Erin Gregor: So I guess it's good things for Bitcoin. there's been predictions. I was reading actually today about, you know, some people think this will actually do well for Bitcoin because the price, people will possibly use the stimulus money to invest in Bitcoin could be something that's true.

But I want to talk more about Bitcoin, because you had mentioned before the call, and I said, I'm not even going to ask you these questions. Cause I have so many questions right now. Let's save them for the recording. You, and I don't know if this was in your podcast. I always like to pimp out Four Minute Crypto, it's your podcast.

You produce five days a week with format a four minute, blurb about Bitcoin. I don't know if this was in here or going to be in there, but you mentioned today the level of difficulty, correct me if I'm wrong. .. rose, you said for Bitcoin?

Gary Leland: No, it drops. It drops.

Okay. And you said difficulty, the mining difficulty factor, I think is.

Erin Gregor: Okay. And you said it, it has in the past, we're not going to predict anything. We are not financial advisors. Please do not take our financial advice. We were just two people who like Bitcoin, but you said the last couple of times that's happened. There's actually been a reduction in Bitcoin. So can you talk a lit or reduction in price?

Price of Bitcoin. Yes. Yeah. So can you talk about what that means and why it has a negative impact on the price of Bitcoin?

Gary Leland: Well, Bitcoin, you know, comes out with a new block of approximately every 10 minutes and, when hash rate is going up for mining and then every two weeks and adjust and it sits substandard, there more people with mining and they're all making a ton of  money because it's easy to do right now. So we're going to go through blocks faster. So we gotta make it harder. So will make it more difficult to mine. And so people are not getting as much Bitcoin, but they're still getting enough. So they're still coming on board. And then two weeks later he goes, ah, They're still hash rate is still real high.

They're still mining like crazy. We're going through these blocks too fast, then it'll adjust again. And then it will harden again, and people will start dropping out. Meyers will start dropping out, but the whole goal of the difficulty adjustment is to keep the locks at 10 minutes or as close to